BP-Led Green Hydrogen Project in Egypt Targets Local Market
TLDR
- A BP-led consortium developing green hydrogen in Egypt is shifting focus to domestic demand after struggling to secure overseas buyers
- The partnership, which includes Abu Dhabi’s Masdar and Egypt’s Infinity Power, aims to develop a multi-phase project
- It faces stiff competition from cheaper producers in Asia and the U.S.
A BP-led consortium developing green hydrogen in Egypt is shifting focus to domestic demand after struggling to secure overseas buyers. The partnership, which includes Abu Dhabi’s Masdar and Egypt’s Infinity Power, aims to develop a multi-phase project but faces stiff competition from cheaper producers in Asia and the U.S.
“We’re looking at local demand until we can find a competitive advantage for Egypt internationally,” said Infinity Power Chairman Mohamed Ismail Mansour. Potential domestic buyers include fertilizer factories and airlines seeking sustainable aviation fuel.
Green hydrogen, made from water and renewable energy, has faced challenges globally due to high costs and limited infrastructure. Projects in China benefit from cost efficiencies, while U.S. initiatives gain support through the Inflation Reduction Act.
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Key Takeaways
Egypt’s green hydrogen ambitions highlight challenges in scaling the industry amid limited international demand. Competing with low-cost production in Asia and subsidized projects in the U.S. has forced developers to explore local applications. Targeting domestic industries like fertilizers and aviation fuel may provide a temporary solution, but scaling Egypt’s green hydrogen for global competitiveness will require cost reductions, infrastructure investment, and strategic incentives. The shift reflects broader struggles in the green hydrogen sector, where overcapacity and high production costs complicate market penetration despite its potential as a key climate-friendly fuel.
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